Sarkis Izmirlian, the original developer of the Baha Mar resort in the Bahamas, has achieved a significant legal victory in his long-running dispute with China Construction America (CCA). The New York Appellate Division recently dismissed CCA’s appeal, paving the way for the enforcement of a judgment that now exceeds $1.7 billion. This ruling is the latest chapter in a prolonged legal battle centered on allegations of fraud and contractual breaches by CCA.

A major legal milestone:

The decision is a crucial step forward for Izmirlian’s company, BML Properties Ltd., which has been embroiled in a protracted legal fight with CCA since the collapse of the Baha Mar project. The ruling confirms that CCA’s actions directly contributed to the failure of the resort, which had initially been slated to open in December 2014. The New York court upheld a previous ruling that found CCA guilty of numerous fraudulent acts, which led to the resort’s delayed opening and BML Properties’ significant financial losses.

According to Eye Witness News – Bahamas, Izmirlian expressed his relief and determination, stating, “We are grateful that the Appellate Court upheld Justice Borrok’s judgment, once again confirming that CCA’s multiple acts of fraud and breaches caused the Baha Mar project to miss its opening, resulting in the subsequent loss of our entire investment.” The chairman of BML Properties emphasized that his company would continue to push for enforcement of the judgment and hoped that CCA would opt for a swift settlement to minimize further disruptions to its operations.

The conflict traces back to 2008 when Izmirlian sought funding for the ambitious Baha Mar resort project. At the time, China’s Exim Bank agreed to provide substantial financing, but with the condition that CCA take on the role of general contractor and oversee the importation of thousands of Chinese construction workers. This deal, valued at $2.45 billion, included contributions from BML Properties, as well as CCA’s own investment.

However, the project soon faced severe setbacks. Despite being nearly completed in mid-2015, Baha Mar failed to meet its promised opening dates, leading to BML’s bankruptcy filing. Izmirlian’s attempts to regain control of the project were thwarted when the Bahamian government chose to place the resort under liquidation. After more than a year of halted construction, the government eventually negotiated with CCA to resume work on the property. Ultimately, Hong Kong-based Chow Tai Fook Enterprises acquired Baha Mar in 2017.

The legal proceedings:

The latest ruling by the New York Appellate Division only solidifies Izmirlian’s position in the case. The court’s decision is the culmination of several years of litigation, including BML Properties’ 2017 lawsuit against CCA. In its judgment, the court found clear evidence that CCA had exercised total control over its Bahamian subsidiaries, using that control to violate contractual agreements, defraud BML Properties, and cause the resort’s failure. The court also outlined multiple fraudulent acts, including the misappropriation of funds, committed by senior officials at CCA.

The case has sparked reactions from both parties. While Izmirlian remains steadfast in his commitment to pursue a settlement or collection of the owed funds, CCA expressed disappointment with the decision. A spokesperson for the company criticized the ruling, claiming that BML Properties’ mismanagement of the project also contributed to its failure. The spokesperson vowed to continue seeking an appeal to the New York Court of Appeals.

In December 2024, CCA filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey. This move was followed by BML Properties’ attempt to place CCA’s Bahamian entities into liquidation in early 2025. The legal wrangling over the Baha Mar project appears far from over, with both sides preparing for future battles in the courts.